Ballina Shire Council tax-deductible donations proposal

A NSW council has pitched a bizarre plan to allow ratepayers to give their tax-deductible donations to councils – instead of charities – to fund essential services such as road repairs.

Ballina Council has pitched a bizarre plan to allow ratepayers to give their tax-deductible donations to councils to fund essential services such as road repairs.

A bizarre proposal to allow ratepayers to give NSW councils tax-deductible donations towards infrastructure, road repairs and sewerage upgrades has been narrowly shot down at a national local government conference.

Ballina Shire Council Deputy Mayor Eoin Johnston put the motion, which would urge the NSW and Federal Governments to allow tax-deductible donations to councils for a “broad range of essential council services”, at the Australian Local Government Association’s conference.

Cr Johnston proposed tax-deductible donations to councils as an alternative to giving to charities or churches for high taxable income earners.

“All I wanted to do was get the motion up and get it considered by a higher level how you could give $10,000, $20,000, $30,000, $40,000 to the local government to spend on infrastructure and services,” Cr Johnston said.

“It was a way of circumventing the taxation money going through the federal government in a circuitous route, going around in a big circle before finally coming back to (the) council.”

Eoin Johnston.

He said donors would not have dictated where the works were prioritised, but donations would go into a fund for infrastructure, road repair, water maintenance and sewerage upgrades.

“There would have to be a lot of checks and balances because you could not have local government controlled by the likes of developers and real estate agents, you’d have to be pretty careful,” Cr Johnston said.

“It’s been a horrendous four or five years, and a lot of councils just haven’t got the money and the federal and state governments aren’t increasing (funding) – they’re in fact cutting it back.”

Mayor Sharon Cadwallader was supportive of the motion, which was narrowly defeated at the conference in Canberra from June 13 to 16.

“Philanthropy is definitely alive and well and why shouldn’t people be able to get a tax deduction for making their places to live, work and play better?” Cr Cadwallader said.

“At Ballina Council we have received over the years some wonderful donations towards community facilities without any expectation of receiving anything in return.”

Ballina Mayor Sharon Cadwallader.

At a Ballina Shire Council meeting earlier this year, independent councillors Cadwallader, Johnston, Phillip Meehan and Rodney Bruem voted to endorse the motion being put at the conference.

Greens councillors Kiri Dicker and Simon Chate, along with independent Cr Stephen McCarthy, voted against the motion.

“The Greens were against it, the theory was that you would just open it up to greedy developers,” Cr Johnston said.

“It disturbs some people who think we would be giving benefits to rich people – but not all people in the community are greedy and not all people in the community are developers.”

Cr Johnston said the council was constantly considering motions appealing for extra funding from the state and federal governments to keep up with infrastructure maintenance costs due to natural disasters plaguing the north coast in recent years.

“Honestly, it’s an exercise in democracy,” he said.

“But to get it over the line and to get the taxation department to change their laws is a massive, massive challenge.”

Hairdresser and owner of Acutabove in Ballina Marcus Doorsman said he and other residents simply did not make enough money that they could afford to write anything off on tax.

“I’m not making much, my business is down 30 per cent since Covid – and then of course we got munted by the floods, I’m just hanging on,” Mr Doorsman said.

“I can understand charities asking for donations, but I’m sure they’re finding few and far between as well, but council gets their ‘donations’ from the rates – I won’t be donating money to council, I simply don’t make enough.”